Drilling for natural gas requires a lot of water, and for operators in Erie wanting to use the town's municipal supply, it's now going to cost twice as much.

The town last week doubled its commercial water rate -- from $5.73 per 1,000 gallons to $11.46 per 1,000 gallons -- for oil and gas developers only.

The change brings Erie into line with what some of its neighbors charge for water associated with well development, said town spokesman Fred Diehl. Fort Lupton, for example, charges $10 per 1,000 gallons, and Greeley charges $10.76.

Diehl said the increase was put into place for just one type of operator because the oil and gas industry has unique impacts on the town.

"We have a specific situation of oil and gas operations in a high-density area with a higher volume of truck traffic associated with it than construction or some other industrial activity," he said. "One of the first concerns we tried to address was residents' concerns over truck traffic."

Those concerns arose late last year when Encana Corp.'s plans to drill an eight-well site between two elementary schools came to light.

Drilling opponents fear that activity at the site will generate thousands of truck trips carrying water and toxic chemicals past Red Hawk Elementary School.

Opponents also worry that hydraulic fracturing, or fracking, at the site will release unhealthy emissions of volatile organic compounds and other pollutants into the air.

Advertisement

Despite months of protests, Encana began drilling the site -- dubbed Canyon Creek -- late last month.

Encana spokeswoman Wendy Wiedenbeck said the company established a source of water for its drilling operations on-site, eliminating the need for around 700 truck trips.

"It is always our preference to identify a nearby water source because it significantly reduces truck traffic associated with the transport of needed water to the location," Wiedenbeck said Wednesday.

But Jen Palazzolo, an Erie mother and leader of the anti-fracking group Erie Rising, said the larger issue of drilling in a residential area remains.

"Cutting down truck traffic is helpful, but it doesn't change the fact that (Encana) is wasting water and contaminating water," she said. "Our feeling is that by the town selling them water, it's making it easier for the operator and making the opportunity to drill that much more accessible."

Palazzolo said there are still going to be hundreds of trucks loaded with contaminated fracking water rolling through neighborhoods in Erie.

"You can never put the health of people and the environment below bringing in money," she said.

Diehl said the town was not driven by the promise of additional revenues in implementing the water fee hike. He said water consumption by oil and gas operators in Erie only accounts for 11/2 to 2 percent of the 3,000 acre-feet of water the town supplies for all uses per year.

"It is by any calculation a very small portion of the overall town's water portfolio," Diehl said.

Wiedenbeck said Encana estimates it will use nearly 13 acre-feet -- or nearly 4.2 million gallons -- of water at Canyon Creek during the drilling and fracking phase.

She said Erie's decision to raise its water rate on oil and gas companies was fair.

"Erie has a right to set a competitive rate for their water," she said.

Even so, the town is well above Longmont in what it charges the industry for water, despite the fact that Longmont has in many ways been more aggressive in trying to impose tough rules on the industry.

Dale Rademacher, the city's public works director, said Longmont charges a straight $3.68 per 1,000 gallons for bulk water, which includes water used by oil and gas companies.

In the end, Diehl said, if operators want to find cheaper sources of water, they are welcome to do so.

MacIntyre feels Colorado is capable of making run at bowl gameCU BUFFS FALL CAMPWhen: 29 practices beginning Wednesday morning 8:30-11 a.m. Wednesday, Thursday, Friday and Saturday practices are open to the media and public next week. Full Story

It didn't take long for Denver music observers to notice Plume Varia. Husband and wife Shon and Cherie Cobbs formed the band only two years ago, but after about a year they started finding themselves on best-of lists and playing the scene's top venues. Full Story